Tariffs hit companies, not countries, and costs are passed to consumers.
Wednesday, 12 Mar 2025
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Reddit is on repeat. I read a thread like this every day.
Keep seeing people say “not if you buy American”
Well here’s the thing, that’s not how markets work in real life. Doubtful that a made in America company will sell their product for less since they don’t have to pay tariffs. They are gonna look at their competitors and say look these guys raised their prices so I can get that much money for the same thing. Doubtful that he will give up profit just to undercut businesses that outsourced their labor to chi/mex/ca.
Ever thought about how the product are cheaper in those countries? Maybe it’s because the their countries subsidize things like healthcare and food. companies don’t have to pay higher wages because the government helps the working class.
Here is how this will play out:
– Trump puts a 25% tariff on Chinese goods
– A Chinese product that used to cost 100 dollars now costs 125
– American companies see an opportunity and manufacture the same product, domestically, and get rewarded with a lower corporate tax by Trump.
– American company sells the product for 124 dollars
US consumers pay more for the same goods, American corporations make record profits, China finds new markets and continues to grow their wealth, Trump and his cronies declare it a success.
One thing I never saw answered
Trump put tariffs in during his first administration, but Biden did not remove them.
Tariffs benefit domestic companies who can’t compete with foreign competitors.
Free trade overall is more beneficial, but if the liberal administration doesn’t unwind tariffs or progress to freer trade, then its opposition to tariffs is – purely political?
Unless we think it’s “just right” as it is
So a tariff is bad because the company passes the extra costs down to the consumer, but raising the minimum wage wouldn’t lead to higher prices??
But reddit tells me higher wages and taxes won’t raise the price to consumers.
This will never not be a hilarious scenario. It will go down in history as the funniest thing to ever happen in politics. How bloody dumb can a population be. Tragic, but waaay funnier than sad.
Isn’t it supposed to be an incentive to buy made-in-America products? I thought the idea was to bring production back to America.
Why has Reddit gone all in on free market capitalism and globalisation now? I remember when that was bad
It’s almost just like raising corporate taxes!
How about sales tax? Will liberals ban sales taxes? Nah.
Oh another post about Tarrifs. lol
Can’t get most goods especially higher end solely American made. Establishing production here would take billions if not trillions of dollars and years to decades. People here are just too stupid to understand basic economics. They screwed themselves over and are dragging down most of us with them.
Do people on reddit forget Biden raised a bunch of tariffs himself? Or is it just because now that the other side is doing it it’s the worst thing in the world.
As a Canadian, it doesn’t matter what side won. Both parties in the USA are isolationists and both use tariffs. And I see a lot of people blowing this off as “they’ll just pass it onto the consumer” as if it wasn’t going to affect Canada at all.
News flash: It’s going to hurt us way more than it hurts you.
Governments in all our provinces are already scrambling like mad men to figure out how we’re going to get through this.
Is this not the same argument people make for corporate tax rates?
If nobody can stop Trump from mandating a 60% tariff on all Chinese imports there WILL be a Great Depression II. I’ve seen so many nonsense arguments like “well just buy a car built in the US”. For one, domestically assembled cars use parts from everywhere. But most importantly an absolute ton of goods come from China and there will be a gigantic cascading effect. Medical supplies use raw materials from China. This will drive up costs of supplies and therefore medical services as a whole. Which means insurance premiums and Medicare will go up. If Medicare goes up, so does your FICA. Which means less take home income on your paycheck. Oops, the cost of everything else just went up too. This is all just the tip of the iceberg. For example domestic product prices will increase to 95% of the price of Chinese goods, something proven during the whole greedflation era. If someone can talk sense into Trump and stop these tariffs, then whatever the clown show can proceed and we can just ignore it. But these tariffs are going to cause some major, society crushing issues.
Funny how most of these people touting the dangers of tariffs are for raising corporate taxes. What do they think will happen with that?
Isn’t this the same argument for higher wages?
Companies pay the higher wages, then pass the higher wages on to the consumer?
How is a higher wage for their employees, any worse or better than a Tara?
Its funny how many people understand that a tariff will be passed through to the consumer, yet out the other side of their mouth cry about corporate taxes needing to be raised. Those are passed through to the consumer as well
Boomer parents said they get it, but it will bring more jobs to America.
So when and where are these factories being built?
Did it start yesterday, because it will take years of these taxes/tariffs before we’ll see new jobs.
Even if they roll back EPA rules and build massive polluting factories near population centers, you’re telling me you want our future children to work there… to work around carcinogenic materials in conditions that often lead to injury and disease?
These people open the doors for themselves, and slam it behind them.
The idea is to create incentive to manufacture goods in the USA. How effective this plan will be is what is in question.
Everyone here is acting like tariffs are something new. They have been used since 1789. Trump raised some tariffs his first term. Biden even expanded some of the tariffs trump had.
All of a sudden yall like talking about tariffs every day. But didn’t say nothing when Biden increased trumps tariffs.
I cant understand how yall live like this. Doom and gloom around the same topic everyday.
Yup that’s all it is.. that’s why Biden raised the tariffs on China over where Trump left them and no one cared..
These people complaining about trump’s proposed tariffs didn’t say a word when Biden introduced a 100% tariff on Chinese EV.
Tariffs are sometimes a good idea and sometimes a bad one depending on the industry, if a country wants to encourage companies to manufacture locally and create more local jobs then tariffs are the only way to do so besides just completely banning imports from China or Mexico. It makes it so producing locally is cheaper hence gives local manufacturers a chance in the market.
Tariffs are bad when it targets essential products like food and produce that cant be created locally and has to be imported.
There are alternatives to foreign. This 100% will hurt other countries more as china took a beating cus of the tariffs last time.
The 25% is not lasting, it’s until Canada/mexico do their part about sealing the borders.